Jobs at risk as Latin America’s downturn deepens

November 5, 2015

Laid-off outsourced worker, who was contracted to work for Petrobras, wears a mask of former Brazilian president Luiz Inacio Lula da Silva during a protest against recent layoffs, in front of the Petrobras headquarter in Rio de Janeiro, Brazil

Millions of Latin Americans risk losing their jobs as a consequence of the region’s economic downturn. Job losses are already piling up in Brazil, mired in its worst recession in generations, and look increasingly likely in other countries, according to a research report by UBS.

Brazil’s currency tests central bank’s patience

October 5, 2015

Brazil's Central Bank President Tombini gestures during a public hearing of the Budget Joint Commission in the Chamber of Deputies in Brasilia

The Brazilian real’s dramatic drop has left the central bank with two options: jack up rates aggressively in one startling move, or tolerate higher inflation for longer.

Rate hikes are coming… in Latin America

September 17, 2015

Federal Reserve Board Chair Janet Yellen prepares to testify before a House Financial Services committee hearing on Capitol Hill at in Washington

Latin American central banks are watching today’s Federal Reserve meeting very closely. Some are ready to raise their own interest rates, even if Yellen does not pull the trigger now.

Stronger dollar still set to fuel inflation in Latin America, despite weak growth

September 10, 2015

A customer selects bananas as others buy goods at a fruit and vegetable store in CaracasFor months, Latin America’s inflation has been surprisingly steady given the steep drop of their currencies. Weak growth helped curb prices – but that may be about to change.

Commodity sell-off adds pressure on unpopular Latin American leaders

July 8, 2015

Brazil's President Dilma Rousseff (C) and Mexico's President Enrique Pena Nieto (2nd R) surrounded by security arrive for the family photo of the VII Summit of the Americas in Panama City

Brazil’s President Dilma Rousseff is fighting for political survival less than a year after being re-elected. Several reasons have been pointed exhaustively to explain how things got so bad in such a short period of time: chief among them are the burgeoning corruption scandal at state-run Petrobras and stubbornly high inflation, out of sync with the rest of the world.

Brazil’s relentless rate hikes shielding economy from inflation bout

June 16, 2015

Employee arranges pricetags at vegetables work bench during the opening day of upmarket Italian food hall chain Eataly's flagship store in downtown Milan

Brazil’s relentless series of interest rates hikes is successfully lowering inflation expectations – despite recent signs to the contrary, from lottery to tomato prices.

India’s central bank nearing policy crossroads

June 11, 2015

Traffic moves at busy intersection in New DelhiThe Reserve Bank of India is facing a fork in the road for the first time since Governor Raghuram Rajan took office amid much fanfare and started targeting inflation as the central bank’s primary mandate.

High Brazil services inflation is hinting at even higher interest rates

May 11, 2015

Brazil's Finance Minister Joaquim Levy delivers a speech during a meeting with businessmen of the France-Brazil Chamber of Commerce in Sao Paulo

Brazil’s monthly inflation rate eased below 1 percent for the first time this year in April and inflation expectations for 2016 have dropped for the first time in two and a half months.

Emerging market stocks look more resilient to a Fed rate hike

April 9, 2015

Members of the Legio X Fretensis (Malta) re-enactment group take part in a display of ancient Roman army life at Fort Rinella in Kalkara, outside Valletta

Expectations may have been pushed to later this year for when the U.S. Federal Reserve will hike interest rates, but a repeat of another steep sell-off in emerging market stocks appears unlikely as much has already been priced in – and because of the stronger dollar.